Can I Cover Dividends With Income Protection Insurance?

Online Quote & Apply

How Insurers View Protecting Dividends

The good news is, most insurers will allow you to insure dividends on a long term Income Protection plan. This is because they understand that company directors earn a large amount through dividends.

  • Personal Income Protection – On a personal Income Protection plan, it is usually possible to cover up to 65% of your gross (pre-tax) personal earnings, which mainly consists of salary plus dividends. Some insurers do limit the maximum amount of cover to 50% of gross income. So, setting the amount of cover within this limit would enable far more insurers to provide competing quotes.
  • Director Income Protection – With an Executive Income Protection plan, it is usually possible to cover up to 80% of gross earnings. It’s important to note that the benefit paid by the insurer would incur income tax (and National Insurance). Rather than you paying for premiums, your company would pay for them. Usually the cost can be put through as a business expense which can have tax benefits.

Some insurers will average both salary and dividend income over the last 3 years. Others however, will just take salary and dividends over the last 12 months. This is an important factor to consider when deciding which insurer to go with.

Essentially, these insurers want to cover a consistent level of income over time in order for you to maintain living standards.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We know that our clients give so much to their businesses. They therefore deserve first class service when it comes protecting that business and their interest in it. Here are just a few reasons why it makes sense to talk to us:

Contact Us

Head Office
7th Floor Corn Exchange
55 Mark Lane
London
EC3R 7NE
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry is a trading name of Brown & Brown Health and Employee Benefits Ltd which is authorised and regulated by the Financial Conduct Authority. FCA Number 312878. Registered in England and Wales (company number 3910149). Registered address: 7th Floor, Corn Exchange, 55 Mark Lane, London, EC3R 7NE.

Cookies

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies including for ad personalization.

If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.

Deny
Approve